SoundHound AI (NASDAQ:SOUN) Trading Up 9% - Time to Buy?

Key Points

• SoundHound AI's stock price rose by 9% during mid-day trading, reaching a high of $21.53, with a significant increase in trading volume of 76,086,568 shares, up 62% from its average.
• A consensus rating of "Moderate Buy" has been assigned to the stock, with price targets ranging from $14.50 to $18.00, despite mixed ratings from analysts, including a "sell" rating from Weiss Ratings.
• SoundHound AI reported quarterly earnings of ($0.19) per share, missing estimates, but with revenue of $42.68 million for the quarter, showing a year-over-year growth of 216.3%.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shot up 9% during mid-day trading on Tuesday . The stock traded as high as $21.53 and last traded at $20.86. 76,086,568 shares were traded during mid-day trading, an increase of 62% from the average session volume of 46,823,109 shares. The stock had previously closed at $19.14.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on SOUN shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of SoundHound AI in a report on Tuesday. HC Wainwright restated a "buy" rating and issued a $18.00 target price on shares of SoundHound AI in a research note on Wednesday, September 17th. DA Davidson upped their price target on shares of SoundHound AI from $15.00 to $17.00 and gave the stock a "buy" rating in a research report on Wednesday, September 10th. Northland Securities raised shares of SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 target price for the company in a research report on Friday, August 8th. Finally, Wall Street Zen lowered shares of SoundHound AI from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $14.36.

SoundHound AI Price Performance

The company has a market capitalization of $8.50 billion, a PE ratio of -33.11 and a beta of 2.60. The business's 50 day simple moving average is $14.97 and its 200 day simple moving average is $11.68.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported ($0.19) earnings per share for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.13). SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 73.13%. The business had revenue of $42.68 million during the quarter, compared to analyst estimates of $32.88 million. During the same quarter last year, the firm posted ($0.11) EPS. The company's revenue for the quarter was up 216.3% on a year-over-year basis. SoundHound AI has set its FY 2025 guidance at EPS. As a group, analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, CEO Keyvan Mohajer sold 118,654 shares of the business's stock in a transaction on Wednesday, October 8th. The shares were sold at an average price of $20.00, for a total value of $2,373,080.00. Following the transaction, the chief executive officer directly owned 2,342,613 shares of the company's stock, valued at approximately $46,852,260. The trade was a 4.82% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Nitesh Sharan sold 126,596 shares of the company's stock in a transaction on Monday, September 22nd. The stock was sold at an average price of $16.58, for a total transaction of $2,098,961.68. Following the transaction, the chief financial officer directly owned 1,796,304 shares in the company, valued at approximately $29,782,720.32. This trade represents a 6.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 725,541 shares of company stock worth $12,675,035 over the last 90 days. Company insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its holdings in SoundHound AI by 9.5% in the first quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock valued at $284,687,000 after buying an additional 3,028,281 shares during the period. Geode Capital Management LLC boosted its holdings in SoundHound AI by 8.3% in the second quarter. Geode Capital Management LLC now owns 8,830,144 shares of the company's stock worth $94,759,000 after purchasing an additional 679,436 shares during the period. State Street Corp boosted its holdings in SoundHound AI by 9.1% in the second quarter. State Street Corp now owns 8,476,348 shares of the company's stock worth $90,951,000 after purchasing an additional 708,369 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of SoundHound AI by 1.0% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,024,632 shares of the company's stock valued at $53,906,000 after acquiring an additional 50,904 shares during the period. Finally, Northern Trust Corp boosted its holdings in shares of SoundHound AI by 2.5% during the first quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock valued at $24,190,000 after acquiring an additional 72,766 shares during the period. 19.28% of the stock is owned by institutional investors and hedge funds.

About SoundHound AI

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.

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